N.J. Admin. Code § 19:31W-1.7

Current through Register Vol. 56, No. 12, June 17, 2024

Section 19:31W-1.7 - Determination of tax credit amount; application of the tax credit

(a) The tax credit for each new qualifying full-time job shall be the sum of $ 10,000 and the amount set forth at (b) below. The tax credit for each retained qualifying full-time job shall be the amount set forth at (b) below.

(b) The taxpayer shall receive the sum of the following amounts as tax credit for each new or retained qualifying full-time job:

1. $ 1,000 if the qualified facility is a building vacant for not less than seven years in need of rehabilitation with a minimum of 250,000 square feet.

2. $ 1,500 for a qualified facility in which at the date of application the manufacturing of personal protective equipment, is part of a research collaboration between the taxpayer and a college or university located within the State. The research collaboration must require at least 35 hours per week of collaborative activity, or any other standard of collaborative activity generally accepted by custom or practice as full-time, as determined by the Authority, and evidenced by an agreement at application.

3. $ 1,000 for a qualified facility in which at the date of application, the taxpayer has established an apprenticeship program or pre-apprenticeship program with a technical school or county college located within the State. The apprenticeship program or pre-apprenticeship program must require at least 35 hours per week of employment or training, or any other standard of apprenticeship or pre-apprenticeship activity generally accepted by custom or practice as full-time, as determined by the Authority, and evidenced by an agreement at application.

(c) The total amount of all tax credits allowed to a taxpayer under this program shall not exceed $ 500,000.

(d) The amount of tax credit per job will not be prorated if the number of qualifying full-time jobs in the application would have resulted in a tax credit amount that is reduced to the $ 500,000 cap per taxpayer pursuant to (c) above. For purposes of this program, the number of new and retained jobs shall be the number of new and retained qualifying full-time jobs for which the taxpayer receives a tax credit after the project cap is applied.

(e) The amount of credit awarded to a taxpayer may be applied against the tax liability otherwise due pursuant to section 5 at P.L. 1945, c. 162 (N.J.S.A. 54:10A-5) or the New Jersey Gross Income Tax Act, N.J.S.A. 54A:1-1 et seq., as relevant to tax liability of the taxpayer.

(f) Notwithstanding the minimum tax schedule imposed pursuant to subsection (e) of section 5 at P.L. 1945, c. 162 (N.J.S.A. 54:10A-5), if the amount of the tax credit allowed exceeds the amount of corporation business tax otherwise due pursuant to section 5 at P.L. 1945, c. 162 (N.J.S.A. 54:10A-5), the amount of excess shall be treated as a refundable overpayment except that interest shall not be paid pursuant to P.L. 1992, c. 175 (N.J.S.A. 54:49-15.1) on the amount of overpayment attributable to this credit amount.

(g) If the credit exceeds the amount of tax liability otherwise due pursuant to the New Jersey Gross Income Tax Act, N.J.S.A. 54A:1-1 et seq., that amount of excess shall be an overpayment for the purposes of N.J.S.A. 54A:9-7; provided, however, that subsection (f) at N.J.S.A. 54A:9-7 shall not apply.

(h) A taxpayer that is classified as a partnership or an entity treated as a partnership for tax purposes shall not be allowed a tax credit directly, but the amount of credit of each member or partner taxpayer in respect to the distributive share of partnership income under the New Jersey Gross Income Tax Act, N.J.S.A. 54A:1-1 et seq., shall be determined by allocating to each member or partner taxpayer that proportion of the credit acquired by the partnership or entity that is equal to the taxpayer's share, whether or not distributed, of the total distributive income or gain of the partnership or entity for its taxable year ending within or with the taxpayer's taxable year.

(i) A New Jersey S Corporation shall not be allowed a tax credit against the tax imposed pursuant to the New Jersey Gross Income Tax, N.J.S.A. 54A:1-1 et seq., directly, but the amount of gross income tax credit of a taxpayer in respect of a pro rata share of S Corporation income, shall be determined by allocating to the taxpayer that proportion of the gross income tax credit acquired by the New Jersey S Corporation that is equal to the taxpayer's share, whether or not distributed, of the total pro rata share of S Corporation income of the New Jersey S Corporation for its privilege period ending within or with the taxpayer's taxable year.

(j) The order of priority in which the tax credit allowed by this section and any other credits allowed by law may be taken, shall be as prescribed by the Director.

N.J. Admin. Code § 19:31W-1.7

Recodified from 19:31-24.7 56 N.J.R. 807(a), effective 5/6/2024